"Fill the Void" is a romantic drama dealing with love and compassion in an ultra-Orthodox family.
It won Israel's Ophir Award for best film and six additional awards.
The movie was screened at the Venice Film Festival where its star, Hadas Yaron, won the best actress award. Yaron was also honored as best actress at the Ophir Awards.
"Fill the Void" also featured Yiftach Klein and Irit Sheleg who won best supporting actress at the Ophir Awards.
Seventy-one films were submitted for the best foreign film category and only five of them will make it to the final round.
Among the nine short-listed movies are Michael Heneke's "Amour", Denmark's "A Royal Affair" and the French hit "The Intouchables".
The final Oscar nominations will be declared on January 10th.
While "Fill the Void" didn't make the cut, Israel still has a chance to take home an Academy Award.
The documentary films "5 Broken Cameras" and "The Gatekeepers" are among the 15 nominees for best documentary film. Five films will be chosen from this list as final nominees.